"Once the winners start having earnings off their winnings, of course that will be taxed," said Brooke Salvini, a CPA and personal financial specialist in San Luis Obispo.

Any income generated through investments will also get taxed, she said.

In California, the top tax rate for individuals is upward of 12%, according to the Franchise Tax Board. On the federal level, it's 39.3%, which is where the lottery winners will find themselves, Salvini said.